Wednesday Nasdaq Analysis 25.02.05Hello, this is Greedy All-Day.
Today’s analysis focuses on the NASDAQ.
Tuesday’s Briefing Results
Chart:
Let's begin by reviewing Tuesday’s briefing results.
On Tuesday, as the price broke above the resistance trendline, our first long entry was taken. A second long entry followed when the price broke above 21600. The target—a horizontal line at 21685—was reached before a correction occurred.
From the entry point, the price rose by approximately $245, yielding a profit of about $4,900 per contract on the long side.
On the sell side, no entry signal was triggered, so no sell position was taken.
Daily Chart Analysis
Chart:
Looking at the daily chart, the NASDAQ appears to still be converging within a narrowing range.
The current position seems to be right before a directional decision is made, positioned near the middle of the Ichimoku Cloud. However, this sideways movement may persist, and the longer it continues, the more likely it is that a breakout in either direction could trigger a significant trend reversal.
Key Support and Resistance Zones on the Daily Chart
Chart:
Buy Perspective:
Entry Trigger: Breakout above the purple box at 21200.
Rationale: Rather than trading impulsively, a long entry is recommended based on the possibility of filling the gap if today’s high is broken.
Risk: The overall trend remains bearish.
Sell Perspective:
Entry Trigger:
Option 1: A break of the short-term ascending trendline, or
Option 2: A break below today’s low at 20943.
Rationale:
This signal indicates significant risk and suggests that the market is overheated—possibly nearing a bubble burst.
Risk:
Although the trend is bearish, entering a short position late in the move raises concerns about how far the price may fall. It is advisable to set targets based on major support levels.
Conclusion
The NASDAQ is currently in a converging state, and it seems best to trade only when clear breakout signals emerge, while staying on the sidelines in ambiguous zones.
For Buyers: Focus on breakouts above the key levels (21779 and 21812) for potential continuation of the uptrend.
For Sellers: Monitor for a break below the ascending trendline or 20943 to confirm a trend reversal.
Stay patient, watch key levels closely, and trade strategically. Happy trading, and let’s finish the week strong! 🚀
